Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on May 11, 2022 Updated on April 25, 2024
Fast Facts
Investment range
$1,850 - $4,600
Revenue potential
$62,000 - $208,000 p.a.
Time to build
0 – 3 months
Profit potential
$50,000 - $83,000 p.a.
Industry trend
Growing
Commitment
Flexible
Bath bombs are booming! Led by fun and funky brands like Da Bomb, the market is expected to nearly triple over an eight-year period ending in 2025.
Made with citric acid, salts, soap, baking soda, essential oils, and other ingredients, bath bombs bubble and fizz when immersed in water and emit soothing scents. They’re surprisingly easy to make at home, so you could start your own bath bomb business and ride this exploding industry to serious success.
But before you start mixing up homemade concoctions, it’s crucial that you know how to develop your idea and get a business up and running. Luckily, this step-by-step guide will prepare you with all the entrepreneurial insight you need to launch operation bath bomb.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Growth forecast – The global bath bomb industry is set to nearly triple by 2025 to reach $350.68 million.
Trends and challenges
Trends in the bath bomb industry include:
Aromatherapy bath bombs with essential oils are seeing increased demand.
Bath bombs containing crystals and geodes are also trending, as more and more people believe stones and gems have healing properties.
Challenges in the bath bomb industry include:
If businesses claim their bath bombs have health or wellness benefits, the products are then considered a drug and subject to strict FDA regulation. Absent such claims, bath bombs are viewed as a cosmetic and face less stringent FDA rules. As a result, many bath bomb brands hint at health benefits without making overt claims.
There is some concern in the market that certain dyes and perfumes used in bath bombs may cause skin irritation and other issues.
How much does it cost to start a bath bomb business?
Startup costs for a bath bomb business range from $1,800 to $4,600. Costs include a website, ingredients, and packaging materials.
You’ll need a handful of items to successfully launch your bath bomb business, including:
Bath bomb ingredients
Mixing bowls and measuring cups
Airtight containers
Packaging materials
Start-up Costs
Ballpark Range
Average
Setting up a business name and corporation
$150 - $200
$175
Business licenses and permits
$100 - $300
$200
Insurance
$100-$300
$200
Business cards and brochures
$200 - $300
$250
Website setup
$1,000 - $3,000
$2,000
Equipment, ingredients, packaging materials
$300 - $500
$400
Total
$1,850 - $4,600
$3,225
How much can you earn from a bath bomb business?
The average price of a bath bomb is about $8. After your costs of ingredients and packaging, your profit margin should be about 80%.
In your first year or two, you could sell 150 per week, bringing in $62,000 in annual revenue. This would mean nearly $50,000 in profit, assuming that 80% margin. As your brand gains recognition and you get repeat customers and referrals, sales could climb to 500 per week. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 40%. With annual revenue of $208,000, you’d make a handsome profit of $83,000.
What barriers to entry are there?
The only real barrier to entry for a bath bomb business is the competition you’ll face.
Related Business Ideas
If you’re still not sure whether this business idea is the right choice for you, here are some related business opportunities to help you on your path to entrepreneurial success.
Step by Step Business values real-life experience above all. Through our Entrepreneur Spotlight Series, we interview business leaders from diverse industries, providing readers with firsthand insights.
Now that you know what’s involved in starting a bath bomb business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Why? Identify an opportunity
Research bath bomb businesses in your area and online to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing uniquely shaped bath bombs or bath bombs with surprising scents, like pineapple or strawberry.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as bath bombs made with coconut oil, geodes or crystals.
This could jumpstart your word-of-mouth marketing and attract clients right away.
What? Crafting irresistible bath bombs for a blissful experience
The key will be concocting a few appealing and unique bath bombs. Once you’ve started building up a reputation, you might consider learning how to make candles, which you could sell as a complementary product.
How much should you charge for bath bombs?
The average price of a bath bomb is $8. After your costs of ingredients and packaging, you should aim for a profit margin of about 80%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Who? Identify your target market
Your target market will be women, and you can find them on TikTok, Instagram and Facebook.
Where? Choose your business premises
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a production facility. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Central location accessible via public transport
Ventilated and spacious, with good natural light
Flexible lease that can be extended as your business grows
Ready-to-use space with no major renovations or repairs needed
Step 3: Brainstorm a Bath Bomb Business Name
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
Name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “bath bombs” or “scented bath bombs”, boosts SEO
Name should allow for expansion, for ex: “Blissful Bubbles” over “Kids’ Bath Bombs Shop” or “EcoBath Bombs”
Avoid location-based names that might hinder future expansion
Discover over 260 unique bath bomb business name ideas here. If you want your business name to include specific keywords, you can also use our bath bomb name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
Executive Summary: A concise overview of your bath bomb business, summarizing its mission, goals, and key highlights.
Business Overview: Detailed information about your bath bomb business, including its structure, location, and the problem it solves for customers.
Product and Services: Clear description of the bath bomb products and additional services your business offers, emphasizing unique selling points.
Market Analysis: Thorough examination of the bath bomb market, including target demographics, trends, and potential growth opportunities.
Competitive Analysis: Evaluation of competitors in the bath bomb industry, highlighting strengths, weaknesses, and strategies to gain a competitive edge.
Sales and Marketing: A comprehensive plan outlining how you will promote and sell your bath bomb products, including pricing, distribution, and promotional strategies.
Management Team: Introduction to the key individuals involved in running the bath bomb business, emphasizing their skills and experience.
Operations Plan: Detailed overview of the day-to-day operations of your bath bomb business, covering production, supply chain, and quality control.
Financial Plan: A detailed projection of the bath bomb business’s financial performance, including income statements, balance sheets, and cash flow forecasts.
Appendix: Supplementary information, such as additional market research, legal documents, or any other relevant details supporting your bath bomb business plan.
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Step 5: Register Your Business
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Choose where to register your company
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to bath bomb businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Choose your business structure
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your bath bomb business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company (LLC)– Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Step 7: Fund your Business
Securing financing is your next step and there are plenty of ways to raise capital:
Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal: Self-fund your business via your savings or the sale of property or other assets.
Bank and SBA loans are probably the best option, other than friends and family, for funding a bath bomb business. You might also try crowdfunding if you have an innovative concept.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your bath bomb business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Step 10: Get Business Insurance
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation: Provides compensation to employees injured on the job.
Property: Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto: Protection for your company-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Essential software and tools
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as LS Retail, Vend, or Retail Pro, to manage purchasing, inventory, and invoicing.
Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero.
If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.
Develop your website
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Marketing
Here are some powerful marketing strategies for your future business:
Website & SEO — Optimize your website with relevant keywords to ensure visibility when customers search for bath and wellness products.
Social Media Showcases — Use visually-oriented platforms like Instagram and Pinterest to display the vibrant and unique qualities of your bath bombs.
E-Commerce Optimization — Enhance your website’s user experience with a clear and easy purchase process, highlighted by calls to action such as “Shop Now”.
DIY Content and Blogs — Share informative blog posts and videos about bath bomb benefits, DIY recipes, and relaxation tips to drive traffic and engagement.
Customer Reviews and Testimonials — Prominently feature customer feedback on your website and social media to provide social proof and build trust.
Pop-Up Shops — Set up pop-up booths at local markets or fairs to let customers experience your bath bombs’ scents and fizz firsthand.
Workshops — Conduct workshops where customers can create their own bath bombs, providing a personalized touch to their shopping experience.
Subscription Boxes and Partnerships — Collaborate with subscription services and wellness blogs to include your bath bombs, thereby expanding your reach.
Local Spa Collaborations — Partner with local spas to feature your products in their services or as part of special package deals.
Loyalty Rewards — Establish a rewards program that offers perks like discounts or a free product after certain purchase milestones.
Referral Incentives — Implement a referral program that benefits both the referrer and the new customer, fostering community and customer growth.
Influencer Collaborations — Engage with influencers in the beauty and wellness sectors to widen your audience and enhance your brand’s credibility.
Focus on USPs
Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your bath bomb business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your bath bomb business could be:
Relax after a hard day with our calming bath bombs
Bath bombs made with coconut oil to make your skin glow
Treat yourself with donut-shaped, soothingly scented bath bombs
Networking
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a bath bomb business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in bath bombs for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in bath bombs. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
Step 12: Build Your Team
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a bath bomb business include:
Bath Bomb Makers – make and package bath bombs
General Manager – scheduling, ordering, accounting
Marketing Lead – SEO strategies, social media
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Step 13: Run a Bath Bomb Business – Start Making Money!
Bath bombs help people relax and are seeing a sharp increase in demand, offering a hot market and an opportunity to get creative and make a good living. They’re easy and inexpensive to make, so you’ll have great profit margins. If you’re willing to put in the work and deliver reliably appealing products, you could bomb the competition and build a great bath brand!
You’re off to a great start, having gained some business information, now it’s time to start experimenting with ingredients and launch operation bath bomb.
Bath Bomb Business FAQs
Is a bath bomb business profitable?
Yes, bath bombs cost very little to make, so profit margins are high. You just need to come up with unique bath bomb recipes and shapes and you can be successful.
How can I learn to make bath bombs?
You can take an online bath bomb making course at Udemy for about $100. There are also a host of sites with instructions as well as YouTube videos you can watch.
Do bath bombs need FDA approval?
In the United States, bath bombs are considered a cosmetic product and are regulated by the Food and Drug Administration (FDA) under the Federal Food, Drug, and Cosmetic Act (FD&C Act). However, they do not require pre-market FDA approval before they can be sold to consumers.
What ingredients are commonly used in bath bombs?
Common ingredients used in bath bombs include baking soda, citric acid, Epsom salts, essential oils or fragrance oils, carrier oils, colorants, and a binder such as witch hazel or water.
Where is the best place to sell bath bombs, beside my website?
Online marketplaces like Etsy, Amazon, or eBay provide exposure to a wide customer base. Local markets or craft fairs allow for direct interaction with customers and the opportunity to showcase your products. Retail stores, especially boutiques or specialty shops, may be interested in carrying your bath bombs.
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